Is W-2 Third Party Sick Pay taxable in Illinois although no State information is even entered on the W-2? Is this a Schedule M Item subtraction item?

Forum|Forum|6 years ago
December 7, 2019
2 replies
23 views

I have a W-2 for US Railroad Retirement Board Sickness and Unemployment Benefits with Gross Wages in Box 1. Box 13 has "Third Party Sick Pay" box checked. There is Nothing in the State boxes 15, 16 and 17. Is this item Taxable in the state of Illinois? Should I include it as a Schedule M subtraction item line 35. Has anyone seen this before? Thank you for any assistance.

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Best answer by itonewbie

If it's taxable for federal, it's taxable to IL (assuming your client is an IL resident). There's no such modification under IL ST CH 35 §5/203(a). May have just been an omission on the W-2.

itonewbieAnswer

Level 15

If it's taxable for federal, it's taxable to IL (assuming your client is an IL resident). There's no such modification under IL ST CH 35 §5/203(a). May have just been an omission on the W-2.

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G

garman22

Intuit Community Champion

I agree with my friend above.

More often than not, insurances fail to include wages in Box 16. If it is taxable at the federal level it is taxable in Illinois.

C

cstoginAuthor

Level 2

I went to the Railroad Retirement Board and it specifically states that Railroad Retirement Sick Benefits are not taxable at the State Level and to attach a copy of either a 1099-G or W-2 to the State Return. So, for Illinois on Schedule M there is line item #35 just for this Non-Taxable sick pay as a Subtraction item to Income.

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